Deutsche Börse Sees Dip in Q3 Revenue, FX Demand Growing in 2020

Deutsche Börse Group, a major German market organizer, has published its financial results for the third quarter of 2020, showing a drop in its revenue and profits as well.

Between July and the end of September, the net revenue of the German Group came in at €707.5 million, a decline of 4 percent from the previous year. The figure also dropped quarter-on-quarter as the Group’s net revenue reached €778 million in Q2 of 2020.

The Group pointed out a ‘significant cyclical headwind’ behind this drop in its business.

However, the adjusted operating costs of the holding company saw a yearly increase of 5 percent to €288 million, boosted by the consolidation effects.

All these contributed to a drop in the net profits of the Group for the quarter. The net profit went down by 8 percent to €235.8 million. Comparing the first nine months’ figures combined, the net profits increased by 9 percent compared to last year.

EBITDA for the latest quarter also declined by 4 percent to €399.5 million, while on an adjusted basis, the yearly drop deepens to 7 percent to €431.4 million.

Deutsche Börse operated several platforms, including the derivatives Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Eurex, commodities exchange EEX, foreign exchange-focused 360T, cash equities platform Xetra, Clearstream, IFS, and Qontigo.

Eurex remained the largest contributor to the Group’s total revenue with €231.8 million, while Clearstream remained the second with €191.2 million. Clearstream recently acquired a controlling stake in the fund distribution platform, Fondcenter AG.

Demand for FX is Growing Strong in 2020

360T, Deutsche Börse’s over-the-counter (OTX) Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term platform, reported net revenue of €24.2 million, a decline of 1 percent from last year. However, the number had strengthened over the two previous consecutive quarters.

Though the EBITDA from the FX business declined 7 percent year-on-year to €11.4 million, it jumped 3 percent on an adjusted basis. In the second quarter of this year, EBITDA remained at €10.2 million.